Business ownership can be an amazing and challenging experience. The key is to have a plan in place. If you want to start a business to get rich quick, looking to work only a few hours per week or someone said you should, then here are five reasons why you should not give up your day job yet.
You haven’t determined the start up cost of your venture. If you haven’t taken the time to determine your start up costs as well as how much it will take to sustain you the first year, then you are not ready to start a business. I’ve had clients come to me right after start up to apply for SBA funding for their business. Most have tapped into their personal savings and at the point of desperation for funding to help them keep their business open. Depending on their credit situation and stability of their business, determines if a lender will take the risk. Starting a business is a commitment and understanding your financial obligations are key to having a stable company.
Your family or close friends said you have the best product or service. I’ve seen this happen too many times. I consult with new clients who are excited about various business ideas because their friends and family told them that their home made brownies were the best around; or make the best costume jewelry. While this might be true, it’s going to take a lot more than the word and sales from your family and friends to stay in business. You must test your products or services as well as research to determine if there is a market for it.
You are tired of working long hours on your job or hate your boss. Your feeling a little frustrated with your job and by starting a business, you can work less and won’t have a boss breathing down your back. Not so fast! If you think that by starting a business you won’t have to work harder and longer hours, you will be in for a rude awakening. Furthermore, you will have a new set of bosses, your customers! Starting a business will require more time and effort, plus an irregular pay check.
You want to make a lot of money, fast! It’s not wrong to want to make money doing what you love; it’s just not likely to happen in that first year or two. You should start with a strong business and marketing plan which is a great road map to the development, growth and success of your business.
You are afraid of failure and risk taking. If the idea of failure and risk-taking has you ‘shaking in your boots,’ then you might want to evaluate your business idea carefully. As a business owner, you will have to make both planned and unexpected decisions. Each business decision made comes with an element of risk, so you must be comfortable in your abilities as a manager of your company.
Fear is normal because of the unknown, but if you have taken the steps to insure business success, it can be overcome. There are resources to help you. Contact your local SBA Regional office for resources available for start-up companies.
In conclusion, since 80% of new businesses fail within their first year, it is extremely important to have a clear purpose, passion and determination to succeed. Otherwise, my advice is to stay gainfully employed!